2007-08-06

Regulation (NAP) - Asset Classification and Provisions

The Central Bank of São Tomé and Príncipe issued this Permanent Application Regulation (NAP) to mandate standardized asset classification and provision policies for all authorized domestic and offshore banks. It establishes a five-tier credit risk categorization system (Normal, Under Supervision, Below Normal, Doubtful, and Loss) with corresponding minimum provision percentages ranging from 2% to 100%, alongside specific impairment recognition and income suspension rules. The regulation further mandates quarterly reporting, prohibits credit renegotiations used solely to avoid adverse classification, and repeals the prior 1992 framework effective immediately.

Sao Tome and Principe

Banco Central de Sao Tome e Principe

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